Demutualization

In May 2001, we filed our demutualization plan with the Iowa Insurance Commissioner. The plan details the process for converting Principal Mutual Holding Company from a mutual insurance holding company to a stock company, including distribution to eligible policyholders of 100 percent of the pre-IPO value of the company. On July 24, 2001, with the close of the Special Members' Meeting, the policyholder voting and compensation election process was completed. Principal Life policyholders voted overwhelmingly to approve the Plan. On July 25, 2001, the Iowa Commissioner of Insurance held a public hearing on the Plan. On August 28, 2001, the Iowa Insurance Commissioner approved our plan.

With the closing of the Initial Public Offering on October 26, 2001, the demutualization became effective. Our mailing regarding compensation to eligible policyholders occurred over a 5-day period beginning December 10, 2001. If you are an eligible policyholder, you should have received notification of your compensation by December 26, 2001.

See the Policyholder Information Booklets and Guides for additional details: